The run-away cost of the Addison Rutland Natural Gas Project is cause for state regulators to re-examine the fundamentals of Vermont Gas’ plans and protect the interest of the utility’s Vermont customers.

The latest cost adjustment brings the total Phase 1 price tag to $154 million, up 79 percent from the original estimate of $86 million. The company can offer no guarantee this will be the final price for the project.

Vermont Gas must get a handle on the project and deliver to the state a realistic budget.

Asking current customers the cover the increased costs in any way is a non-starter. If that’s what Vermont Gas needs to make the pipeline work, then the project ends here and now.

Vermont Gas argues customers stand to gain $200 million in energy savings when the project is completed, but how do people who already use natural gas and must pay for the project cash in on these “savings?”

Vermont Gas was already under fire after waiting four months to finally reveal in July Phase 1 costs had risen 40 percent from the initial estimate of $86 million to $121.6 million.

Vermonters then learned in late December the that price tag had gone up again, this by nearly 27 percent.

The basics behind the project are sound. Extending the reach of natural gas — available only in Franklin and Chittenden counties — down to Rutland would offer an an energy source to homeowners and businesses that has proven to be cheaper than oil.

The first phase would run the pipeline from Colchester to Middlebury. Phase 2 would deliver natural gas to Cornwall and Shoreham, as well as to the International Paper plant across the lake in Ticonderoga, N.Y.

The idea is that natural gas would save consumers money and serve as an economic stimulus to the region by lowering costs for business.

Yet the ever rising cost throws the whole economics of the project into question.

Vermont Gas leadership appear to recognize the seriousness of their predicament to postpone pushing ahead with seeking state approval for Phase 2 of the project.

The Public Service Board should take a cue from the utility and look into reopening the licensing case for Phase 1.

Regulators need to protect Vermonter and seek assurances from Vermont Gas that this and all future cost increases in the Addison Rutland Natural Gas Project will result in no harm to ratepayers pocketbooks.